TOKYO (Nikkei)–Taiyo Nippon Sanso Corp. (4091)announced Friday that it will withdraw from a joint venture that produces a specialty gas used in manufacturing solar cells and semiconductors.

Shinji Tanabe, right, will step in as president next month.

The company will book a 23.3 billion yen extraordinary loss in the April-September period due to the move. President Yasunobu Kawaguchi will step down effective Oct. 1 to take responsibility for the poor results, and executive compensation will be reduced 10-20% for one year. Kawaguchi will be succeeded by Senior Managing Director Shinji Tanabe.

The monosilane gas venture with Germany’s Evonik Degussa Corp. has a plant in Mie Prefecture. The German firm will halt production and close the facility this fall. A refining joint venture will also be dissolved.

Monosilane gas is primarily used in manufacturing thin-film silicon solar cells. However, falling silicon prices have undercut the competitiveness of that type of solar cell.